Bonds of Liberty Global Plc units fell to records after talks on a possible deal with Vodafone Group Plc ended without agreement.

Virgin Media Finance Plc, which was bought by billionaire John Malone’s Liberty Global in 2013, saw its 460 million euros ($515 million) of January 2025 bonds fall 2.9 cents to 92.8 cents on the euro, the lowest since they were issued earlier this year, according to data compiled by Bloomberg. The 700 million euros of German unit Unitymedia GmbH’s January 2027 bonds declined 5.1 cents to a record 84.4 cents.

Liberty’s talks on swapping assets or even merging with Vodafone ended Monday, quelling speculation that a deal would have led to an upgrade of its subsidiaries’ credit ratings. Virgin Media and Unitymedia are rated at least five levels below Newbury, England-based Vodafone.

“The end of the talks is affecting the whole Liberty Global structure as investors expected some of these entities to become part of Vodafone,” said Andrew Wilmont, head of European high-yield investment at Neuberger Berman Group LLC in London, which oversees about $257 billion. “Vodafone is a very strong investment-grade issuer, which would have improved the credit profile of these companies a lot.”

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